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Handelsbanken BasicIndustry Seminar 2011Jan Johansson, President and CEO                                   10 March 2011
SCA GroupA global hygiene products and paper company    Net sales SEK 109bn    45,000 employees and sales in more than    ...
SCA Group    Sales and EBIT split 2010EBIT split                                                    EBIT split            ...
Leading market positions   Global and regional                                     Nordic region                          ...
Strong global and regional brands                                    Eastern Europe    North America          Europe      ...
SCA Group Strategic Priorities       Cost reductions in all               Efficiency programs in     Personal Care        ...
Growth High potential in markets with low penetration      Usage of hygiene products              Units/capita/year   Unit...
GrowthSCA’s growth markets    Latin America                       Strong SCA positions    South East Asia    Good market g...
Increased pace of innovationStrengthens market positions9                              10 March 2011
Personal care    Initiatives 2010         Restructuring program in baby diapers in                       Net sales 2010:  ...
Tissue    Initiatives 2010         Implementation of price increases                          Net sales 2010:         Inve...
PackagingInitiatives 2010     Finalized restructuring program                     Net sales 2010:         Annualized savin...
Forest ProductsInitiatives 2010     Efficiency project at Ortviken                Net sales 2010:     paper mill          ...
Full year 2010 vs. 2009  SCA market update     Hygiene business              Good volume growth in Incontinence care, Femi...
High raw material prices  NBSK pulp                                                                                Feb 201...
Full year 2010 resultsSEK m                                                                       Change,   Change,     un...
Net debtAnd debt payment capacity     SEKm               Net debt decreased SEK 6 bn                          %     50 000...
Dividend     Proposed 8% increase of the dividend     to SEK 4.00 (3.70) per share18                                      ...
Outlook 2011     Good demand for all businesses     Good growth in Emerging markets for Hygiene businesses     Continued h...
Q&A20         10 March 2011
21   10 March 2011
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SCA Presentation at the Handelsbanken Materials and Energy Seminar

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Presentation of Jan Johansson, CEO and President, SCA at the SCA Presentation at the Handelsbanken Materials and Energy Seminar in Stockholm, Sweden on March 03, 2011.

http://www.sca.com/ir

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Transcript of "SCA Presentation at the Handelsbanken Materials and Energy Seminar"

  1. 1. Handelsbanken BasicIndustry Seminar 2011Jan Johansson, President and CEO 10 March 2011
  2. 2. SCA GroupA global hygiene products and paper company Net sales SEK 109bn 45,000 employees and sales in more than 100 countries World’s third largest hygiene products company TEN and Tork leading global brands for incontinence care and Away-From-Home tissue Europe’s largest private forest owner Europe’s second largest packaging company2 10 March 2011
  3. 3. SCA Group Sales and EBIT split 2010EBIT split EBIT split Forest Products Sales split Personal Care 25% 29% 15% 22% 27% 36% 16% 30% Packaging Tissue 3 10 March 2011
  4. 4. Leading market positions Global and regional Nordic region Incontinence care: 1 Baby diapers: 1North America AFH tissue: 1AFH tissue: 3 Consumer tissue: 2Incontinence care: 3 Europe Tissue: 1 Corrugated board: 2Mexico Baby diapers: 3Incontinence care: 1 Incontinence care: 1Tissue: 2 Privately owned forests: 1Feminine care: 3Baby: 3 Global Incontinence care: 1 Colombia AFH tissue: 3 Australia Incontinence care: 1 Feminine care: 1 Feminine care: 1 Tissue: 1 Incontinence care: 1 Tissue: 2 4 10 March 2011
  5. 5. Strong global and regional brands Eastern Europe North America Europe Latin America Asia Pacific5 10 March 2011
  6. 6. SCA Group Strategic Priorities Cost reductions in all Efficiency programs in Personal Care SCA Group 5%* business areas of Packaging and Forest Thin baby diaper SEK 1bn Products Personal Care 2%** TENA Ultra thins Emerging markets 10%** Cash flow from Closure/Divestment Strong TENA value current operations: of 18 packaging units assortment Tissue 2%** SEK 7.4bn Emerging markets 6%** Supply chain Tissue excellence and asset Tork Xpressnap Packaging 20%* utilization programs in Café Tissue Europe Tork Performance Forest Products 3%** Tempo ice Restructuring program in Baby diapers in Packaging Europe Trueflo New tissue plant in ZeoCool Mexico Forest Products New Personal Care Increased value plant in Russia added*Adjusted for exchange rate movements, divestments and closures* *Adjusted for exchange rate movements 6 10 March 2011
  7. 7. Growth High potential in markets with low penetration Usage of hygiene products Units/capita/year Units/child/year Units/woman/year Kg/capita/yearPenetrationin maturemarketsaround 35% North America Western Europe Eastern Europe Latin America Asia 7 10 March 2011
  8. 8. GrowthSCA’s growth markets Latin America Strong SCA positions South East Asia Good market growth Favourable socio-demographics Eastern Europe /Russia Joint venture Middle East Good market growth Favourable socio-demographics China Incontinence care products8 10 March 2011
  9. 9. Increased pace of innovationStrengthens market positions9 10 March 2011
  10. 10. Personal care Initiatives 2010 Restructuring program in baby diapers in Net sales 2010: Europe Annual savings of EUR 15m with full effect SEK 25bn in Q3 2011 Investment in local production in Russia Acquisition of Copamex baby diapers business No. 3 in Mexico Feminine care Incontinence 17% care Growth 56% TENA has increased market share Incontinence care products in China expanded Feminine care products launched in Malaysia and tampons in Sweden and the Netherlands Extended range of Libero baby care products Emerging market sales increased 10%* Baby diapers 27% Innovation TENA Ultra thins Thin baby diaper Strong TENA value assortment* Adjusted for exchange rate movements 10 10 March 2011 23 november 2010
  11. 11. Tissue Initiatives 2010 Implementation of price increases Net sales 2010: Investment in new tissue plant in Mexico SEK 40 bn European brand migration project Consumer Growth tissue Tork has gained market share in Europe 62% and North America Emerging market sales increased 6%* Innovation Tork Xpressnap Café Tork Performance AFH-tissue Tempo Ice 38% Tempo Kids Tempo toilet tissue* Adjusted for exchange rate movements 11 10 March 2011 23 november 2010
  12. 12. PackagingInitiatives 2010 Finalized restructuring program Net sales 2010: Annualized savings of SEK SEK 30bn 1,070m Divestment of the Asian Protective packaging 3% packaging operation Industrial packaging 4% Service 4% Annual sales of USD 250m Price increases Consumer packaging Innovation 20% Trueflo ZeoCool Conventional corrugated board 69%12 10 March 2011 23 november 2010
  13. 13. Forest ProductsInitiatives 2010 Efficiency project at Ortviken Net sales 2010: paper mill SEK 17bn Annual savings of SEK 45m Timber 8% when fully realized LWC-paper Pulp 18% Creation of Gällö timber AB 16% SCA Energy, new business unit SC-paper SCA’s deliveries of FSC 17% certified publication paper increased 35% Solid-wood products Newsprint 27% 14%13 10 March 2011 23 november 2010
  14. 14. Full year 2010 vs. 2009 SCA market update Hygiene business Good volume growth in Incontinence care, Feminine care and AFH tissue Good sales growth in Emerging markets Personal Care 10%* Tissue 6%* Packaging and Forest Products Increased demand for Packaging • Corrugated volumes increased 5% • Corrugated prices increased 6% Publication paper volumes increased 3% Solid-wood product volumes increased 8% Significantly increased raw material prices Raw material costs increased SEK 5.2bn Stronger SEK to other currencies Negative sales impact of SEK 7.2bn equivalent to 6%* Adjusted for exchange rate movements 14 10 March 2011
  15. 15. High raw material prices NBSK pulp Feb 2010 – USD 840 Feb 2010 – EUR 89 OCC Feb 2011 – USD 949 Feb 2011 – EUR 135 USD/metric ton USD/Metric tonne10251000 EUR / ton EUR/t 975 150 950 925 900 875 130 850 825 800 110 775 750 725 700 90 675 650 625 600 70 575 550 525 500 50 475 450 425 400 30 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 NBSK PIX Value OCC PIX Dec 2009 – USD 277 Jan 2010 – EUR 0.30 Recovered paper - USA Dec 2010 – USD 310 Oil based materials 1,75 EUR/Kg Jan 2011 – EUR 0.41 USD/short ton450 USD/short ton 1,50 EUR / kg400 1,25350300 1,00250 0,75200 0,50150100 0,25 50 0,00 0 jan-03 jan-04 jan-05 jan-06 jan-07 jan-08 jan-09 jan-10 jan-11 -93 -94 -95 -96 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 Polyethylene (PE) Bags, backsheet, pack.film Propylene (Contract fd) Superabsorbent High grade deinking OCC Oil (eur/kg) Polypropylene (PP homo) NW, Fibres15 10 March 2011 23 november 2010
  16. 16. Full year 2010 resultsSEK m Change, Change, unless otherwise stated 2010 2009 % %**Net sales 109,142 110,857 -2 5***EBIT* 9,608 9,648 0 4EBIT margin* (%) 8.8 8.7Profit before tax* 8,492 8,004 6 10Earnings per share (SEK) 7.90 6.78 17Cash flow from current operations 7,399 11,490 -36Debt/Equity ratio 0.51 0.60* Excluding restructuring cost** Adjusted for exchange rate movements*** Adjusted for exchange rate movements and divestments16 10 March 2011
  17. 17. Net debtAnd debt payment capacity SEKm Net debt decreased SEK 6 bn % 50 000 50 36% 40% 40 000 40 33% 35% 33% 30 000 30 20 000 20 10 000 10 0 0 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Net debt Debt payment capacity17 10 March 2011
  18. 18. Dividend Proposed 8% increase of the dividend to SEK 4.00 (3.70) per share18 10 March 2011
  19. 19. Outlook 2011 Good demand for all businesses Good growth in Emerging markets for Hygiene businesses Continued high raw material costs Increasing corrugated prices Price increases on publication papers19 10 March 2011
  20. 20. Q&A20 10 March 2011
  21. 21. 21 10 March 2011
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